Methodology of financial analysis Flashcards
1
Q
What does the methodology of financial analysis represent?
A
It represents all the procedures, techniques and methods used by financial analysis.
2
Q
What are the types of methodology used in financial analysis?
A
- Qualitative analysis
- Quantitative analysis
3
Q
What is the main objective of qualitative analysis?
A
Qualitative analysis is used to identify/find the causes which compose a phenomenon and the relationship between them.
To model the phenomenon
4
Q
What is the main point of quantitative analysis
A
Its main object is to measure the influences of determinant factors on a certain phenomenon.
5
Q
What are the types of quantitative analysis?
A
- Competitive analysis (horizontal analysis): Top of companies
- Analysis of internal state (vertical analysis): Influences of factors
6
Q
What are the procedures used in the case of qualitative analysis?
A
- Comparison method
- Decomposition of results
- Economic modeling
- Factor grouping
